Principles of Management
The practice of management is based on specific disciplines which are known as principles of management. Management principles are the facts and truth gained through deep observation and experiment. Multiple scholars have added many principles at various times by their research and investigation one of them a scholar is Henri Fayol.
Henry Fayol, a French industrialist, proposed 14 principles of management by his experience, that are universally applicable in all types of organizations. Since he is known as the Father of modern management. That is why these principles are also called principles of modern management.
14 Principles of Management by Henri Fayol are:
Lets individually describe the above management principles,
#1 Division of Work
According to the division work, every employee in the organization must be assigned only a specific type of work to increase efficiency. Because a single person can not do many tasks at once.
Division of work emphasizes specialization, where every employee has a specialized task to do and less their working pressure will be which eventually increase the productivity, speed in tasks, accuracy, and profitability of the organization.
#2 Authority and Responsibility
Authority and responsibility are two interrelated terms in management. If there is authority there must come responsibility as well as only responsibility is unfair without authority.
While authority is power and right inherent in a managerial position through which a manager commands his subordinates, where responsibility is the obligation fulfilled by the subordinates.
Authority without responsibility can make a person irresponsible thus there may be a misuse of power. Similarly, responsibility without proper authority makes a person ineffective.
Thus, this principle emphasizes on there must be a proper balance between authority and responsibility.
Discipline means respecting the rules, regulations, procedures, and guidelines of an organization. Discipline must require to accomplish any specified tasks or projects.
Discipline is a core value of all success.
Discipline is developed for the creating of a feeling of self-responsibility among all the members of the organization. It is challenging for a manager to make a good manner in the organization, thus the manager has to create a disciplined environment in the organization through clear and fair agreement, good supervision, and judicious application of penalties.
#4 Unity of Command
According to this principle, an employee must get orders and instructions from only one manager (boss) at a time. This principle helps to reduce the employee’s responsibilities and confusion.
For example, if an employee gets orders from many superiors at a time, he will get confused about what to do first and later. In this situation, a single employee can not fulfill his responsibilities efficiently and commit mistakes. It leads to delay in works.
#5 Unity of Direction
Unity of direction means a group of people having the same objectives but the directing head is one. In other words, one group of people who follow the direction from only one manager or in-charge.
The related activities should be put under one group and there should be one plan of action and they all should be under the control of one particular manager. And it is essential to maintain unity in operation.
#6 Subordination of Individual Interest to General Interest
This principle focuses more on the group of interest rather than the single person (employee) interest. A single person can not fulfill the goals of the organization or he falls down the organization.
Thus, the individual interest does not take over the goal of the organization, it must be reconciled between the organizational goals and the individual goals otherwise the organization will in a danger zone.
#7 Remuneration of Personnel
Remuneration is the reward paid to the employees for their contribution. Employees should be paid fair remuneration according to their contribution.
Most employees attract to the organization and give the best performance which has a good practice in the remuneration system and has extremely satisfied employees.
For a good remuneration policy in the organization, there should be a fixed basic wage besides it, there should be a good provision of monetary and non-monetary incentives (financial and non-financial incentives).
#8 Centralization and Decrntralization
Centralization refers to the decision-making authority only from top-level management. In a centralized organization, few hands have the decision-making authority. Where decentralization refers to the decision making from all over the organization, that means the view of bottom level employers, employees are also gets involved in decision making.
Maintaining centralization or decentralization in the organizations depends upon the nature and size of organizations and also the knowledge and capabilities of subordinates.
There is almost no fully centralized or decentralized organization, so Henri Fayol suggests there must be a balance between centralization and decentralization of any organization.
#9 Scalar Chain
This principle of management refers to the unbroken line of authority from top to bottom in a hierarchy. The scalar chain is important for systematic and orderly communication in an organization. All information is communicated through successive chains either from top to bottom or from bottom to top.
It is a must-follow rule in the organization. According to Fayol, the scalar chain should be strictly followed except in an emergency.
This principle of management is concerned with the systematic arrangement of material and social order. In his principles of management, Fayol classified orders into two types first is material order and the second is social order.
Material order is concerned with the proper placement of materials, machines, and other physical things. Where social order is concerned with the placement of the right person in the right job.
Thus in short order means, there should be a place for everything and everything should be in its proper place.
Equity refers to the kindness and justice of all the employees in the organization. According to this principle, all employees should be treated equally and respectfully and the manager must have to avoid favoritism and partiality among the employees.
May you better understand what is equity?, from the picture below, which I found on Facebook.
#12 Stability of Tenure
According to this principle, employees must have the feeling of job security in the organization. Because instability in the job of employees leads to inefficient work.
Stability job helps employees to develop experience and efficiency. The feeling of job insecurity among employees leads to high labor turnover, delay in work, less productivity, increased cost of training, selection, and supervision.
Employees must feel free to make their own plan and execute it. Employees want to fulfill their responsibility on their own risk and knowledge. The manager should encourage the initiative of the employees.
Freedom provides a sense of self-motivation among the employees and makes them more loyal and dedicated towards the organization, eventually leads to the productivity of the organization which helps to sustain in long run.
#14 Esprit De Corps
Esprit de corps means “Union is Strength” or “Team Spirit”. There must be a team spirit and coordination among the employees in the organization.
Unity is a strength and the strength of an enterprise depends upon harmony and mutual understanding among employees. Thus, a manager has to take the necessary steps to promote team spirit and develop a feeling of harmony in each other.
These are the universally accepted 14 principles of management provided by Henri Fayol. And he also clarified that these principles are not hard and fast laws that must be followed rather than he said these are guidelines that can be modified in different situations in different ways.